This is not a deductible expense unless there is a business use of the home. Is the home a rental? Do you operate a business out of the home? If the answer to these questions is no, then the expense is personal in nature and can not be deducted, even in part, on your taxes.
However, there are tax credits available for certain improvements made to your home that do not have to do with whether or not you operate a business out of your home. These are:
In 2016, an individual may claim a credit for (1) 10 percent of the cost of qualified energy efficiency improvements and (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during the taxable year (subject to the overall credit limit of $500).
Qualified energy efficiency improvements include the following qualifying products:
• Energy-efficient exterior windows, doors and skylights
• Roofs (metal and asphalt) and roof products
• Insulation
Residential energy property expenditures include the following qualifying products:
• Energy-efficient heating and air conditioning systems
• Water heaters (natural gas, propane or oil)
• Biomass stoves
Please note that qualifying property must meet the applicable standards in the law.
The residential energy property credit, which expired at the end of December 2014, was extended for two years through December 2016 by the Protecting Americans from Tax Hikes Act of 2015. Please refer to the following link for more information IRS Energy Efficiency Tax Credits (click here).
Below is a screenshot of where to include energy efficient credits on your tax return in Turbo Tax Deluxe.
